Verbal Lease is Binding But Risky

Verbal Lease is Binding But Risky

Robert Griswold | Steven R. Kellman | Ted Smith
28-Mar-1999 Sunday

This column on issues confronting renters and landlords is written by
Counselor of Real Estate and Certified Property Manager Robert Griswold, host of Real Estate Today! with Robert Griswold (10 a.m. Saturdays on AM1130 - KSDO radio, or on the Internet at www.retodayradio.com), and by attorneys Steven R. Kellman, director of the Tenants' Legal Center, and Ted Smith, principal in a law firm representing landlords.

Q: We moved into our apartment three months ago and are having many problems. The front window leaks like a sieve when it rains, the heater has not been fixed and we have bugs. Several minor cosmetic repairs were promised but never completed.

We never signed a written rental agreement, but verbally agreed to a month-to-month tenancy. When we put down the deposit, the landlord just wrote, "must stay six months to get deposit back" on the back of the receipt.

I have called and reported these problems ever since we moved in. The landlord always says he'll take care of it, but nothing ever gets done.

Can we move? If so, do we get the full security deposit back? If we stay, doesn't the landlord have to address all of the complaints?

A: Griswold: Verbal agreements of less than one year are enforceable, yet not advisable for either tenants or landlords. Since you are on a month-to-month agreement, you can move after giving your landlord a 30-day notice of your intention to vacate the premises. Be sure to put it in writing.

California law is very clear regarding security deposits. I believe that the statement that you "must stay 6 months to get back deposit" is illegal if it is intended to make any portion of your security deposit nonrefundable. All security deposits, no matter what the landlord calls them, must be fully refundable.

Sometimes you will see creative landlords call the security deposit by another name. For example, a cleaning deposit, pet deposit, performance guarantee fee, or re-leasing fee.

But the California Civil Code is very clear: Regardless of what the deposit is called, or is to be used for, it must be fully refundable and any deductions are only for the legally allowed items. You should receive a full accounting of your security deposit, including a refund of any balance due to you, within 21 days of vacating the premises.

If you stay, your landlord must promptly address all legitimate health and safety issues -- the leaking windows and broken heater would seem to qualify as health and safety or habitability violations.

The issue of the bugs requires a determination as to the cause and the responsibility will vary depending on the source. For example, if the landlord can establish that the bugs are the result of your poor housekeeping, then they are your problem to solve.

The cosmetic repairs should be completed since they were promised; however, it will be more difficult to enforce this since you do not have anything in writing.

Q: Recently my lease ended and I turned in my keys. Earlier in the year my car was damaged by water while parked in the underground garage. I informed the property manager, who never responded. I contacted them again at the end of my lease and they instructed me get a quote from a specific repair shop. I supplied them with the quote, along with two other quotes.

How do I proceed if they do not respond to my request for repairs? They have not disputed their responsibility. Please advise.

A: Griswold: It sounds like the management company has acknowledged responsibility. Thus, I would advise sending a formal demand letter to them with the following points:

1) the fact that your property was damaged; 2) a reminder that you contacted them and they advised getting a quote from a specific repair shop; 3) the copies of other bids; 4) a request for compensation equal to for the most reasonable repair estimate; and 5) a request for a response
within two weeks.

Keep the first letter cordial and do not threaten legal action. If this doesn't work, send a stronger letter giving a 10-day deadline before you take legal action that includes reimbursement for legal costs. Then, if necessary, take them to small claims court.

Smith: Not so fast, Robert. I'm not convinced that the landlord is responsible for the water damage to the car. Where did this water come from? Is it from a natural flow? Was the window or top left down? All these questions need to be answered.

You should first file a claim with your auto insurance company. Your insurance company will probably honor the claim without assigning fault. In this case, the landlord will not be responsible unless there is a clear showing of the landlord's negligence in causing the water damage.

IF YOU'RE A TENANT OR LANDLORD, the authors stand ready to answer your questions in this column, although letters cannot be answered individually. Write them at: Rental Roundtable, Homes Section, San Diego Union-Tribune, P.O. Box 120191, San Diego, CA, 92112-0191. Or you may e-mail them at rgriswold.sdut@retodayradio.com

Copyright Union-Tribune Publishing Co.

Back to 1999 Rental Roundtable Index

Robert Griswold and the Real Estate Today! radio show strongly support the intent and the letter of all federal and state fair housing laws. As a reminder to all owners and managers of real estate, note that all real estate advertised is subject to the Federal Fair Housing Act, which makes it illegal to advertise "any preference, limitation, discrimination because of race, color, national origin or ancestry, religion, sex, physical disability, or familial status, or intention to make any such preference, limitation or discrimination." Additional state and/or local fair housing laws may also apply. Be sure to inform all persons that all dwellings offered or advertised are on an equal opportunity basis.

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Revised and Updated - Wednesday, April 26, 2006

Robert S. Griswold, CRE, CPM, CCIM, PCAM, GRI, ARM
Griswold Corporate Center
Griswold Real Estate Management, Inc.
5703 Oberlin Drive, Suite 300
San Diego, CA 92121-1743
Phone: (858) 597-6100
Fax: (858) 597-6161
Email: rgriswold.ret@retodayradio.com